Tax Administration and Internally Generated Revenue: A Study of National Revenue Authority, South Sudan.
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Date
2024-11
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Abstract
The study aimed at assessing the effects of tax administration system on internally generated revenue by the National Revenue Authority in South Sudan and was guided by the following objectives: to examine the effects of administrative efficiency on internally generated revenue in National Revenue Authority, Republic of South Sudan, to investigate the effects of taxpayer compliance on internally generated revenue, and to determine the impact of institutional capacity on internally generated revenue and To examine the relationship between tax administration and internally generated revenue in National Revenue Authority, Republic of South Sudan. The study was underpinned by two mutually reinforcing theories of Revenue Diversification Theory (RDT) and Principle Model of Taxation Theory. The study used a descriptive research design in which both qualitative and quantitative methods of data collection were employed and a sample size of 191 from the population of 380. But out of those only 180 respondents received filled and returned the questionnaire with 92.7% response rate. Systematic and purposive sampling strategies were used, and the Self-Administered questionnaires and interview guide used to collect the data. Findings from the study revealed that the majority of respondents strongly disagreed that administrative efficiency was effective in ensuring compliance with laws and regulations. The results suggested a widespread perception of inefficiency in the administrative system. It implies that respondents believe that the current administrative processes and practices are not effectively enforcing compliance with laws and regulations. A significant portion of respondents (33.3%) disagreed that they were familiar with the enforcement agencies responsible for ensuring compliance. This indicates a potential lack of awareness or communication regarding these agencies. The majority of respondents disagreed that they were familiar with the process of taxpayer registration. This suggests a potential lack of awareness or understanding of the registration process among the respondents. Findings also indicate that a notable proportion of respondents expressed dissatisfaction with the accurate and timely recording of revenue transactions. This suggests a perceived weakness in this area, indicating that there may be challenges in maintaining accurate and up-to-date records of revenue transactions. The data indicates a moderate level of satisfaction in monitoring activities within organizations or fields, with approximately 50% of respondents indicating satisfaction. The study also concluded that there is a strong positive relationship between tax administration and internally generated revenue with the Pearson correlation coefficient between the two variables being 0.957. As tax administration improves, there is a corresponding increase in internally generated revenue, and vice versa. This highlights the importance of effective tax administration practices in driving higher levels of internally generated revenue. There is a need for better dissemination of information about enforcement agencies and improved collaboration and coordination between these agencies and other institutions involved in ensuring compliance. The study recommended that the government should improve the dissemination of information about enforcement agencies and their roles and responsibilities. Strengthen Collaboration and Coordination, Improve Enforcement of Existing Laws.